Seattle recently raised the minimum wage requirement to $15/hour. Franchisees have brought suit claiming that the new legislation unfairly burdens them, and that they should be recognized as small business owners. As cities seem to be enacting laws that make minimum wage higher than the federal minimum wage ($7.25/hour), it will be interesting to see the effects. The standard claim against raising wages argues that employers will lay off or not hire as many employees. One market study in this article found that hotels would actually pass the cost over to consumers by raising room rates. Generally speaking, I am inclined to think that companies will not let this effect their bottom line, whether that means less employees or passing the costs to consumers, I’m not sure.